Kazakhstan Multimodal Transport Logistics Competitiveness Assessment: Opportunities and Challenges of Key Nodes in the Eurasian Supply Chain

Assessment of Kazakhstan's Multimodal Transport Logistics Competitiveness: Opportunities and Challenges for a Key Node in the Eurasian Supply Chain

Against the backdrop of accelerated restructuring of supply chains across the Eurasian continent, global supply chains have placed higher demands on the reliability, transparency, and cost efficiency of transport corridors. As a hub of the land corridor connecting China and Europe, Kazakhstan's multimodal transport logistics system is being re-evaluated by multinational manufacturers, procurement organizations, and logistics operators. A recent study published in *Frontiers in Future Transportation*, based on Logistics Performance Index (LPI) comparisons, enterprise management diagnostics, and transport route modeling, systematically assessed the competitiveness of Kazakhstan's multimodal transport logistics system, revealing the country's true position in the Eurasian logistics landscape.

Overview of the Study

The study was completed by a research team from Al-Farabi Kazakh National University and other institutions, and comprehensively employed multiple methods: comparative analysis of the 2023 LPI and its sub-indicators; comparison of the evolution of logistics performance between Kazakhstan and China from 2007 to 2023; questionnaire surveys and risk analysis of Globalink Logistics, a major logistics enterprise in Kazakhstan; and construction of a multimodal transport route model to examine the efficiency and bottlenecks of different transport modes.

One of the important findings of the study is that Kazakhstan occupies a "middle ground" in Eurasia in terms of overall LPI score. Taking 2023 data as an example, its logistics performance is significantly better than that of Central Asian neighbors such as Uzbekistan and Kyrgyzstan, but there is a clear gap with economies such as China and Turkey. In particular, among sub-indicators such as customs efficiency, infrastructure quality, ease of international transport, logistics competence, cargo tracking, and timeliness, the shortcomings are concentrated at the institutional and digitalization levels.

Another key result is that between 2022 and 2023, Kazakhstan's transit freight volume exceeded 30 million tons, with rail dominating multimodal transport. However, insufficient coordination among logistics segments, poor node connectivity, and lagging information tracking systems are eroding its potential gains as a Eurasian bridge.

Supply Chain Background

Eurasian multimodal transport corridors typically involve a combination of multiple transport modes, including rail, road, inland waterway, and maritime shipping. Kazakhstan is located between China and Europe and is an important member of the New Eurasian Land Bridge. In recent years, tensions in the Red Sea have increased uncertainty in maritime shipping routes, and the China+1 sourcing strategy has driven industries to relocate to Central and South Asia, significantly raising attention to land corridors.

However, multimodal transport is not a simple superimposition of multiple transport modes. Supply chain management research shows that corridor competitiveness depends on the completeness of infrastructure, node connectivity, reliability of transport services, efficiency of customs and border management, and institutional coordination among all participants. Although Kazakhstan has a relatively long railway network, some sections have reached capacity saturation, transshipment capacity at border ports is limited, and the intermodal interfaces between inland terminals and ports/airports have not yet achieved seamless connectivity.The low level of logistics digitalization makes cargo tracking difficult, and cargo owners are unable to obtain real-time information on shipments in transit, which directly increases supply chain risk perception and inventory costs. For global procurement systems, this uncertainty prompts companies to opt for more expensive but more reliable ocean or air freight solutions.

Enterprise Decision-Making Logic

Taking Globalink Logistics as an example, the company is one of Kazakhstan's leading integrated logistics service providers, with business covering international freight forwarding, project logistics, and multimodal transport services. A survey (n=79) shows that customers are not highly satisfied with transit times, information transparency, and customs processing speed. Respondents pointed out that the main bottlenecks include: long waiting times for multimodal transshipment, poor information communication among participants, complex cross-border procedures, and uneven infrastructure conditions.

From the perspective of enterprise decision-making, the competitiveness of logistics operators depends not only on their own assets, but also on their ability to integrate social resources, coordinate government relations, and apply digital tools. The Globalink case shows that logistics companies in Kazakhstan are transitioning from traditional freight forwarders to supply chain integration service providers, but the institutional environment and technological foundation are constraining this process.

For multinational manufacturers and buyers, the decision to choose the Kazakhstan corridor is based on a trade-off between total cost and risk. If the speed of overland transport can approach the reliability and cost of ocean shipping, while providing real-time transparency and predictability, companies are willing to shift some high-value or time-sensitive cargo to land routes. Conversely, if the corridor's unpredictability, hidden costs, and compliance risks are too high, companies will continue to rely on traditional ocean shipping.

Supply Chain Impact

The research findings have clear implications for suppliers, manufacturers, logistics companies, and procurement systems.

For suppliers, Kazakhstan's central logistics location means that domestic suppliers face high logistics costs and time costs when entering global markets. Weaknesses in infrastructure and customs efficiency undermine export competitiveness, especially in time-sensitive consumer electronics and automotive components.

For manufacturers, setting up production capacity in Kazakhstan requires careful assessment of logistics support capabilities. Although labor costs are low and resources are abundant, the risk of supply chain disruption is high, requiring additional safety stock or redundant logistics solutions. Under the trends of nearshoring and friend-shoring, Kazakhstan may become a regional manufacturing hub in Central Asia, but only if the multimodal transport system can provide service capabilities that match industrial demand.

For logistics companies, digitalization and collaboration capabilities are key to future competition. Asset investment alone is no longer sufficient to build a moat; investment is needed in cargo tracking systems, data exchange platforms, smart terminals, and information-sharing mechanisms with customs and railway companies.For procurement systems, the efficiency and transparency of the corridor directly affect global sourcing strategies. If Kazakhstan can improve customs efficiency, shorten transshipment times, and strengthen bonded warehousing and shipment tracking capabilities, it can serve as a logistics fulcrum for sourcing and production in Central Asia under the China+1 strategy.

Regional Impact

Kazakhstan's logistics performance affects not only the country itself but also the supply chain landscape of Eurasia.

In Asia, China is Kazakhstan's largest trading partner, and the stable operation of the China-Europe Railway Express requires Kazakhstan to provide efficient transit services. If Kazakhstan's logistics capabilities improve, it will enhance the export competitiveness of China's western and central provinces to Europe and may attract more companies to set up Asian distribution centers in Central Asia.

In Europe, the EU is promoting the "Global Gateway" strategy and seeking transport diversification. Kazakhstan is a key link in the alternative north-south corridor to Russia. Although the cargo volume of the Trans-Caspian International Transport Route (Middle Corridor) is lower than that of the northern route, it holds strategic backup value when geopolitical risks intensify. Improvements in Kazakhstan's infrastructure will directly affect the practical utilization of this corridor.

In the Middle East and South Asia, Kazakhstan is also a potential component of the north-south corridor connecting Russia with the Gulf states. If procedures through the Caspian Sea and Iran are simplified, regional trade will be promoted.

However, if Kazakhstan fails to address the identified capability gaps, it may be marginalized. China and Turkey are upgrading their own logistics networks and promoting digitalization, which will create substitution effects for transit countries. Gaps in logistics performance may prompt cargo flows to reroute and bypass inefficient nodes.

Future Trends

Over the next 1-5 years, Kazakhstan's logistics development will depend on the following factors:

• Infrastructure investment: including railway electrification, expansion of border ports, construction of multimodal transport terminals, especially supporting facilities for the Trans-Caspian corridor.
• Customs reform: introducing "single window", risk management, pre-clearance, and fast lanes for high-value cargo to reduce administrative delays.
• Digital application: building a unified logistics data platform to achieve end-to-end visibility of cargo tracking and logistics information.
• Institutional coordination: establishing a national logistics coordination body to integrate stakeholders such as railways, highways, customs, and logistics enterprises.
• Industrial linkage: combining with industrial parks, bonded zones, and export processing zones to enhance the added value of logistics services.

Research suggests that Kazakhstan should prioritize improving the "soft" elements of logistics capacity, as there is already a certain foundation in infrastructure. For global supply chains, if these reforms go smoothly, Kazakhstan can play a more critical role in China-Europe land transport and become a hub for regional supply chains in Central Asia; otherwise, its transit advantages will continue to be eroded by other corridors.

Key Conclusions- Kazakhstan occupies a middle position in the Eurasian logistics system, with limited competitiveness but locational potential. - The shortcomings in logistics performance are concentrated in customs efficiency, infrastructure quality, digitalization, and logistics capabilities, rather than geographic location. - Corporate decisions will be based on total cost and reliability; improving logistics transparency can change supply chain route choices. - Over the next five years, Kazakhstan's logistics reforms will determine whether it can become a reliable node in the Eurasian supply chain.

Section Category

Logistics and Transportation

Recommended Tags

Multimodal transport, supply chain resilience, Logistics Performance Index, Eurasian corridor, nearshore manufacturing

Related Industry Chains

Cross-border transportation, warehousing and distribution, rail freight, customs compliance

Related Countries

Kazakhstan, China, Turkey, EU member states